Semtech shares up after strong earnings report
Semtech Corp., a Camarillo semiconductor company specializing in Internet of Things applications, saw shares up more than 5% after the markets closed Sept. 1 after the company shared a record-breaking financial statement for the second quarter of fiscal year 2021-22.
Semtech delivered earnings of $32.2 million, or 50 cents per share, for the second quarter of the 2021-22 fiscal year, a 64.2% increase from the same quarter a year earlier.
The rise in net income comes with record net sales in Semtech’s wireless and sending group products and its signal integrity products group.
In total, Semtech generated $185 million in net sales during the second quarter of 2021-22, a 9% increase from the same quarter a year ago when the company made $170.3 million.
Six months into Semtech’s fiscal year, the company has $355.3 million in net sales, up from $276.3 million in the same period a year ago, while net income is at $56.4 million, compared to $25.7 million last year.
Semtech also had record operating cash flow of $53 million, or 29% of its second quarter net sales.
“Fiscal Q2 was a strong quarter with the company achieving record net sales and record diluted earnings per share. The strong global demand for our core growth engines in the IoT and infrastructure segments, led by our LoRa and Tri-Edge platform,s is very exciting,” Mohan Maheswaran, Semtech’s president and CEO, said in a press release. “We are confident that we should be able to continue to execute across all our product groups and deliver a record performance in FY2022.”
Semtech’s stock was up 1.5% over the course of the trading day Sept. 1, closing at $70.96, its highest closing mark since April 28. Shares then popped to $75 in after-hours trading, after the earnings release.
Semtech repurchased 639,519 of its own shares for $42 million during the second quarter, and the company ended the quarter with $262.6 million in cash and cash equivalents.